re: Facebook now under $20.(Posted by GumboPot on 8/2/12 at 12:53 pm to bsramzy)

quote:I was looking at this as a potential buy...but I dont think it has hit rock bottom yet

I read one analyst report that $10 is the entry point. IDK.

I'm personally concerned with throwing money at a business where barriers to entry are so low and the customers (mostly young people) are so fickle. I mean, google, bing, etc. can have the next best thing and FB will be a thing of the past. Tough call.

Anyone see the documentary on HBO called "Catfish?" Still not sure why it's called Catfish but it's basically about a sad woman in the middle of nowhere creating a facebook account as a young girl that dates this dude over facebook. She went as far as making multiple other facebook pages, buying a separate cell phone, and playing games with this dude for months. One day, he actually showed up to her house and she's this overweight married lady with two seriously disabled kids that can't clean themselves. It was one of the most bizarre things I've ever seen.

quote:I really want to buy some put options on this. Anybody have any feedback or thoughts on that?

Be very careful buying options and make sure you can lose all your money in that play. The only way I would buy options is if you knew there was going to be a large price movement in a short period of time. That usually requires inside info or being incredibly lucky.

quote:What do they produce again? What essential service do they provide?

This. I said in an earlier thread that they don't offer premium services like LinkedIn or great advertising like google. These are key factors in increasing revenue growth. FB does not have either right now. The stock was overvalued and was hyped up by news.